I am 28 years old and in the 28% tax bracket. I currently max out my 401k at work ($9500) per year. However, I intend to retire earlier than 59 and 1/2. I may end up dipping into the 401k funds early, but it seems that I am still better off than if I reduced my 401k contributions and upped my taxable investments. My reasoning is that under the current tax laws, my retirement tax bracket will only be 15%. Allowing the funds to grow tax deferred, then being taxed the 10% penalty, then the 15% income tax will still put me ahead of where I would be paying 28% now, right? Any comments or insights?